Nigerian, Chinese investors to develop houses in three states
Some Nigerian investors and their Chinese counterparts have entered into an agreement to promote housing developments in the South Western states of Ondo, Osun and Ogun.
The Chinese businessmen, who are currently in the country, are in talks with their Nigerian counterparts to explore some areas of opportunities that include construction activities, building materials, especially, lightings, and alternative power supply.
The firms, Sinafri-Hongye Group of China and Niger-Sino Nigeria Limited, in conjunction with the Hemaded Logistics Group, have pledged to boost growth in the real estate sector.
The Chinese investors, led by the Sinafri-Hongye’s Marketing and International Relations Manager, Mr. Sebbs Azubuike; Director, Mr. David Yang; Managing Director, Energy Unit, Mr. Xu Jacky Ronchang; and Managing Director, Electronic/Electrical of Sinafri-Hongye, Mr. Pan Bing Kui, highlighted their findings and desire to commence business in Nigeria immediately they formalised agreements with their partners in the different areas.
Yang identified real estate and construction as their major areas of interest, but at the ancillary level, lightings, alternative energy supply, especially solar, and by extension, agriculture, would be included in their operations.
According to Yang, Sinafri-Hongye has more than 100 branches globally, with a capital base worth $10bn in real estate, furniture industry and construction sectors.
“Housing provision and power supply are congruous in this age and time when fighting against weather changes that pose threat to the environment is intensifying. Apart from the fact that solar energy is environmental friendly, it is also cost-effective compared to conventional energy supply,” he said.
According to him, when the business takes off in the country, schools, hospitals residential and industrial estates will be targeted for provision of solar energy.
The Chief Executive Officer, Hemadeb Group, Mr. Tunde Akinboun, said the cooperation with the Chinese group in real estate would be concentrated in Ondo, Osun and Ogun states.
According to him, the market potential for real estate in the country calls for investment in solar energy.
“It is economically wise to explore more of solar use, especially for streetlights and other domestic usages,” he said.
The Managing Director, Polons Engineering Nigeria Limited, a real estate firm, Mr. Akin Abiola, said the desire of Sinafri-Hongye to do business in the country was commendable.
He, however, noted that some areas might make or mar the goal, including funding, building materials and cost of production in general.
“Nigeria’s business potential in real estate sector is enormous no doubt, but the truth of the matter is that the climate makes it difficult to achieve the desired goal of making housing available for the low income earners,” he said.
Abiola told the investors that the house types required in the country presently were not for the elites, but rather for the middle class and low income earners.
He also lamented the lack of mortgage facilities in the country, blaming the commercial banks for high lending rates and absence of long-term funding.
“For the success of your business ambition in Nigeria, I will implore you to put these three factors into consideration so that all the stakeholders will be better off at the end of the day,” he told the investors.
The Chairman, Niger-Sino Nigeria Limited, Mr. Olanrewaju Saka-Shenayon, said he was confident that the outcome of the collaboration between the two parties would be successful.
He said his optimism was based on the landmarks that Chinese firms had made in construction works in Africa, especially in Nigeria.
“We have confidence in our new partners and we believe that at the end of the day, we will sign a Memorandum of Understanding and activities will commence,” he said.
PUNCH.
